Karnataka Bank posts half year net profit of Rs 123.12 crore

Karnataka Bank posts half year net profit of Rs 123.12 crore

mangaloretoday.com

Mangalore, Oct 21, 2013: Mangalore based Premier Private Sector Bank, Karnataka Bank Ltd., has posted a net profit of Rs 123.12 crore for half year ended September 2013. The operating profit of the Bank has increased by Rs 101.45 crore from Rs 327.70 crore to Rs 429.15 crore registering a   growth of 30.96 per cent.

A press release from the Bank informed that the business turnover of the Bank has touched Rs 64,483 crore as at the end of September 2013, against Rs 56,363 crore as at the end of the corresponding period last year, registering a y-o-y growth of 14.41 per cent. The deposits of the Bank grew by Rs 4046 crore from Rs 33,968 crore to Rs 38,014 crore registering a  growth of  11.91 per cent. Advances grew by Rs 4,074 crore from Rs 22,395 crore to  Rs 26,469 crore registering a growth of 18.19 per cent, the release said.

Current Account, Savings Account (CASA) increased by Rs1067 crore from Rs 7,970 crore to Rs 9037 crore registering a   growth of 13.39 per cent during the period. The Net Interest Income has increased by Rs 80.11 crore from Rs 454.54 crore to Rs 534.64 crore registering a growth of 17.62 per cent.

The release further said that the Capital Adequacy Ratio stood at 13.47 per cent [under BASEL II standards] against the regulatory requirement of minimum 9 per cent.

“Despite sluggish growth in economy and subdued investment sentiments, Bank has been able to do well in many areas and I am optimistic about the growth opportunities for the second half of current year” said   P Jayarama Bhat, MD & CEO of the Bank.

During the half year, the Bank has opened 73 service outlets comprising of 8 branches and 65 ATMs, taking the tally of service outlets to 1126 [558 branches and 568 ATMs]. The Bank has its presence in 20 states and 2 union territories, and plans to take the tally of service outlets to 1,200 by the end of March 2014 by increasing the number of branches and ATMs to 600 each.

The Bank is eyeing a business turnover of  Rs 78,000 crore for the current financial year 2013-14 comprising of deposits of Rs 45,500 crore and advances of Rs 32,500 crore.

The Bank has won several  excellence awards during the half year ended Sept 2013 including the ASSOCHAM Social Banking Excellence Award 2013[Runner up] under the "Private Sector Banks Category",Sunday Standard FINWIZ -2013 Best Bankers Awards under the following 3 categories:
a. Best Bank for Customer Friendliness under the category of Midsized   Banks.
b. Best Banker for Customer Orientation under the category of Private Sector Banks.c. Best Banker for HR under the category of Private Sector Banks.

It has also won IDRBT Banking Technology Excellence Awards for the year 2012-13, among Small Banks, under the following categories: a. Best Bank Award for Managing IT Risks.  B. Best Bank Award for use of IT for business innovation